The hub-and-spoke model is a logistics and distribution approach in which goods are received at a central hub (warehouse or distribution center) and then distributed to a number of spoke locations, including regional warehouses or retail stores. By centralizing stock, this model facilitates smaller, more frequent deliveries to spokes and bulk transportation to the hub, thereby streamlining inventory management. It reduces redundant inventory across locations and enhances inventory visibility and control. Nonetheless, the model is highly dependent on the hub’s effectiveness and ability to withstand interruptions.
